#Sweden #Stockholm #ASSA ABLOY #3millID #Third Millennium

ASSA ABLOY's Strategic Moves: A New Chapter in Access Control Technology

In an exciting development for the access control industry, ASSA ABLOY, a global leader in access solutions, has signed an agreement to acquire two noteworthy companies—3millID Corporation and Third Millennium Systems Ltd. This strategic move is set to bolster ASSA ABLOY’s technological capabilities and market presence in both the United States and the United Kingdom.

A Game-Changer in Physical Access Control

Nico Delvaux, the President and CEO of ASSA ABLOY, expressed his enthusiasm about this acquisition, highlighting the significance of integrating 3millID and Third Millennium into the ASSA ABLOY Group. He stated, "I am very pleased to welcome 3millID and Third Millennium into the ASSA ABLOY Group, exciting technological additions that will reinforce our current offering within physical access control, and provide complementary growth opportunities."

These two companies focus on readers and credentials essential for physical access control. This acquisition not only strengthens ASSA ABLOY’s current offerings but also opens up new avenues for growth in allied technologies and markets.

Profiles of 3millID and Third Millennium

3millID, founded in 2015 and headquartered in Highlands Ranch, Colorado, is recognized for its proprietary access control readers and technology-enabled products. Catering primarily to enterprise customers in North America, the company has established itself as a formidable player in the access solutions arena. Conversely, Third Millennium, established in 1996 and based in Wales, UK, specializes in providing access control solutions and software specifically tailored for enterprise and government customers across the UK and Europe. Notably, Third Millennium is renowned for its robust in-house technological expertise.

The two firms have already been collaborating since 2015, having established a successful commercial partnership that encompassed technology development and sales initiatives. Collectively, they employ around 40 professionals, and will now join HID’s Physical Access Control Solutions Business Area, further enhancing this segment of ASSA ABLOY.

Financial Implications

Regarding financial performance, the joint revenue for the year 2023 was approximately MUSD 21 (around MSEK 220), characterized by a healthy EBIT margin. With the acquisition, ASSA ABLOY anticipates an immediate positive impact on earnings per share (EPS) from the outset. This underscores the financial prudence behind the acquisition, as it is expected to yield benefits right after completion.

The Road Ahead

The acquisition is subject to customary closing conditions and is anticipated to be finalized in the first quarter of 2025. Björn Lidefelt, EVP and Head of HID, articulated the strategic vision by stating, "Welcoming 3millID and Third Millennium into the HID family demonstrates our continued investment in core physical access control technologies. These acquisitions will not only enhance our current product lineup but also expand our global footprint outside the United States."

About ASSA ABLOY

Established as a pioneering force in access solutions, ASSA ABLOY operates globally with a workforce of around 61,000 employees, generating sales of SEK 141 billion. The group has cemented its leadership in critical segments such as efficient door openings, trusted identities, and entrance automation. With a commitment to innovation, ASSA ABLOY continually strives to provide safe, secure, and user-friendly access to both physical and digital spaces. As the company embarks on this new chapter, stakeholders eagerly await the positive impacts these acquisitions will bring, reaffirming ASSA ABLOY’s commitment to advancing access technology.

For more information or inquiries, ASSA ABLOY can be reached through their executives: Nico Delvaux, President and CEO, Erik Pieder, CFO, and Björn Tibell, Head of Investor Relations. Their combined expertise and leadership will undoubtedly play a pivotal role in maximizing the successful integration of these new acquisitions.